Vista Equity Standard Operating Procedures
Vista’s investment size has historically ranged from $20 million to over $10 billion in equity capital. Our investment committee process for vetting transactions and continuous expansion of best practices enables us to offer value on larger transactions and funding below this range.
Since Robert F. Smith founded the company in 2000, Vista Equity Partners has been recognized for its unique investment practices, known as VSOP's, or, Vista Standard Operating Procedures. Test vekslera wppsi. VSOP's are specific operational strategies designed to maximize investment returns for software businesses. Vista Consulting Group (VCG) is a team of subject matter experts who work in conjunction with portfolio company executives and Vista investment professionals to help our businesses strengthen their operations through standardized and repeatable processes and methodologies. Vista Best Practices are what sets VCG apart within the industry.
Vista’s target investments are typically profitable, or nearly profitable, and are past the venture stage of their lifecycle. In most cases, we are the majority shareholder and only outside investor. This reduces the distractions commonly associated with having multiple financial investors and permits us to take a differentiated, long-term perspective. We are flexible and creative and pursue investments using a variety of transaction types. • Management and/or leveraged buyouts • Minority investments • Acquisition or growth financings • Recapitalizations or restructurings • Spinouts or divestitures • Take private transactions. Industry Focus Vista has focused on the software industry since our founding.
We look for opportunities to build and grow sustainable, successful businesses in our target markets. Vista seeks companies that research and develop proprietary software solutions and either license them to their customers or leverage them internally to create a technology-enabled service. This includes companies that develop and market software, software as a service, and technology-enabled business, and information services. We believe there are various elements to the software business model that can create a differentiated, scalable, and highly profitable business. Identifying specific companies that can be transformed through the implementation of operational best practices and turned into predictable, high cash flow businesses is key to Vista’s target selection. While our portfolio companies need not fit a specific profile, many of our prospective investments have some common characteristics.
Collaborative Partnership Vista provides strategic and operationally-focused investment with the goal of adding meaningful, sustainable value to each company within our portfolio. In addition to investment capital, we offer our portfolio companies access to proprietary best practices and an extensive relationship network. What sets us apart is our philosophy of working closely with management teams at the outset of each investment to reach a common understanding of business goals, develop the appropriate performance benchmarks, and implement proven best practices. Together, we aim to build some of the very best companies leading the technology sector today. Vista provides a tailored approach for adding value for each of our companies; we provide strategic, operational, and financial expertise.
Robert Smith is the Founder, Chairman, and Chief Executive Officer of Vista Equity Partners. A March 2018 Forbes profile described Vista’s performance: “Since the firm’s inception in 2000, Vista’s private equity funds have returned 22% net of fees annually to limited partners, according to PitchBook data. Annual realized returns, which reflect exits, stand at a staggering 31% net.
His funds have already made distributions of $14 billion, including $4 billion in the last year alone. Not surprisingly given those numbers, Vista has become America’s fastest-growing private equity firm, managing $31 billion across a range of buyout, credit and hedge funds.” Vista owns many businesses including Marketo, Tibco, Omnitracs and Infoblox to name just a few. You can find a full list on Vista’s web site. • “We are very disciplined buyers.” “You think about Warren Buffett and Henry Kravis, and to a great extent, Columbia seems to mint a whole bunch of people who understand value investing and go about it in a different way.” In addition to degree in chemical engineering from Cornell, Smith obtained an MBA from Columbia University Business School. There is little doubt that at Columbia Smith was taught that value investing as an analytical style is very different from value investing as a statistical factor in an index fund. When you hear someone say something in the news or on social media like “Value stocks were up [or down] today” they are either (1) talking about value as a statistical factor or (2) are confused about the difference.